ABSTRACT
The economic and political crisis, which began in 1974, is probably a transitional crisis. In the economic sector, the prevision that the country would have to renegotiate its external debt was confirmed. After the Mexican moratorium in September 1982, the confidence of the international banks in relation to Brazil disappeared rapidly. At the end of 1982, however, Brazil had two alternatives: to declare a complete moratorium or to declare a moratorium of the principal and continue to pay the current interest and dividends while negotiating with the IMF and the main creditors. The second alternative was chosen by the conservative Brazilian government, and in January Brazil signed its letter of intent to the International Monetary Fund. The solution to the economic crisis will depend upon the formation of a new political pact that would give legitimacy to the new government it would create. The crisis of Brazil's economy is part of the world economic crisis that began in 1970.
